Deal realigns Korea pay TV

CJ Group buys share of On Media for about 30% of the market

South Korean conglom CJ Group has acquired a controlling stake in On Media Corp. for $369 million, making it the dominant provider in the local cable TV business.

The deal was done via CJ subsidiary CJ O Shopping Co., the country’s second-largest cable TV shopping channel operator, which has agreed to buy 55.17% of On Media from Orion Corp. and other shareholders.

In the works since April, the pact is subject to approval by the Korea Communications Commission, the country’s broadcasting and telco regulator.

The new deal will give CJ Group some 30% of the cable pay TV market, creating a network that could compete with terrestrial broadcasters KBS, MBC and SBS.